Financial Aspects of Public Health Exam 1 Questions With Correct Answers
0 view 0 purchase
Course
Financial Aspects of Public Health
Institution
Financial Aspects Of Public Health
Financial Aspects of Public Health Exam 1
Questions With Correct Answers
Explain the primary functions of finance. - answerproviding financial analyses to improve
decisions that affect the wealth of the organization; borrowing funds and investing excess cash
resources of the firm
Explain the p...
Financial Aspects of Public Health Exam 1
Questions With Correct Answers
Explain the primary functions of finance. - answer✔providing financial analyses to improve
decisions that affect the wealth of the organization; borrowing funds and investing excess cash
resources of the firm
Explain the primary functions of accounting. - answer✔a system for providing financial
information; financial accounting records financial history and managerial accounting looks
forward; helps managers make ongoing decisions to help the organization maintain both its
profitability and viability
What are the primary goals of financial management for not-for-profit healthcare organizations?
- answer✔managers are concerned with maximization of salaries and benefits; profits are
necessary to achieve the goals related to providing high-quality care
What are the uses of profit for health care organizations? - answer✔health care organizations
need profits to:
- invest in expansion of services so there is wider access to healthcare
- need to earn profits on some patients in order to subsidize those patients who are unable to bear
the costs of their services
- acquire new technologies to improve the quality of health care
- have money available should an emergency arise
Explain the relationship between financial risk and financial return. - answer✔the lower the
risk, the lower the return
The greater the risk we must incur, the greater the anticipated profit or return on our money we
demand.
What do accountants mean when they say "short-term" and "long-term"? - answer✔short-term
= 1 year or less
long-term = more than 1 year
Why is the US health care system considered complex? - answer✔Unlike most industries, third
parties often pay health care service providers for services rendered
How do healthcare organizations get paid? Do payers all pay the same rate for the same service?
- answer✔Usually, the bill is submitted by the health care provider directly to the insurance
company for payment. The insurance company adjusts the charges on the bill for the contractual
allowance and pays its share.
No, payers pay different rates depending on their insurance
What is a third-party payment system? How does this payment system affect the financial
management of health care organizations? - answer✔Someone other than the individual
receiving the medical care pays for the service
Changes, such as bundled payments and ACOs, require financial managers to hold negotiations
with other health providers to determine how to split the lump-sum bundled payment, who will
pay the administrative costs of the ACO, and how to divide any
Medicare shared savings
What is a contractual allowance? - answer✔The difference between the provider's charge and
the negotiated rate
Why are some charges not reported as revenue for healthcare organizations? - answer✔Because
most health care organizations have no expectation of getting paid full charges (because they
have already negotiated discounts up front), the organization is not allowed to claim the full
charge as revenue when it reports the financial results of its operations.
What were the major changes contained in the Patient Protection and Affordable CareAct of
2010? - answer✔- The primary goal of this reform was to extend health insurance coverage to
uninsured Americans
- encouraged the creation of Accountable Care Organizations (ACOs), or cooperative groupings
of health care providers
- the law requires insurers to eliminate annual and lifetime coverage caps and eliminate copays
for services deemed "essential"
What is an accounting entity? - answer✔the unit for which we wish to account (ex: a
department, project, or organization)
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Brightstars. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.49. You're not tied to anything after your purchase.
